there in 2002 there's you says the cub is healthy, lively and alert mother and baby will be shielded from the public for the time being you are watching d. w. news from berlin up next he w business takes a look at its search in luxury spending in some sectors of society in china, and the us more coming at the top of the hour. and don't forget all the latest news and information is available around the clock and our website, that's d w dot com a michael. ok. thanks for joining teed up with lou time once again for a brief update. because this orchestra called the brain continuously adapts itself. so we ask

a few astute questions. we smarter swarms. are you a psycho cra, wouldn't causes monster waves help powerful on your thoughts? we can control our thoughts, which makes us very powerful. questions about life, the universe and the rest that we're series 40 to the answer, almost everything this week on d, w ah, high value products, high value company search in luxury spending is that elvia h to become yours. first off, trillion dollar firm will ask why people are spending big despite a shake in global economy. the use sti,

lemme finance ministers meeting in stock home have been toughing it out. whether the block spending rules should be tightened and a dangerous dependency how moldova aims to end. its reliance on electricity is applied by russian. back to separate is data we business on robots in berlin. welcome to the program. for the 1st time, a european company has hit the half a trillion mark luxury group, l v m h reached a market capitalization of over $500000000000.00 this week. the owner of brands including louis, if we talk to your and tiffany is writing a search in luxury spending. the sector is seeing major growth in the us and among china's middle class in particular, elvia mates has seen it share price increased tenfold over the past decade. let's just take a look at your most valuable companies. as you can see, m h tops the tree by some distance in terms of market capitalization, is actually just dipped below 500000000000 dollars since crossing that threshold

earlier in the week. second is danish pharmaceuticals, multinational nova nor disk. and then in 3rd is the world's largest cosmetics company, l'oreal so notably, no tech firms or energy firms in the top 3 in europe. and as i mentioned earlier, maybe has benefited from a booming luxury goods market. have a look at how that's growing over the past decade. it took a big hit during the pandemic, as you can see here, but is now surging once again, way past pre pandemic levels. where we can now speak to our own boss who is global head or consumer and retail research at h s, b c. thank you very much for joining us on the program. so just tell us what is elvia may be doing, right? they're doing a lot of things, right. i think, i think clearly what we've seen over the past 3 years is an acceleration of market share gain are great visibility, very high margins. and what's happening now is you're seeing quite a few earnings upgrades coming through. i think fundamentally,

we had underestimated the impacts of the reopening in europe, even more so in the u. s. and now you have chinese consumers coming back and they're moving the needle quite significantly. that is, what is surprising though, is to see that luxury brands are doing so well. and we have so much about cost of living crises in various parts of the world and, and various financial strains on people. why is the luxury market, i mean, bounce back and then some, hasn't it since before the pandemic? how's that? how's that happening? well, i think, you know, it's a period of time probably as well when consumers need a bit of escape ism and to be fair. the consumers who are purchasing luxury have relatively high financial means and are not completely immune, but obviously more resilient when facing inflationary pressures. and when you've been stuck at home for so long, i think you know, you aspire to trouble, you aspire to, forgetting what we've just all been through. and there's absolutely no need to buy

luxury. but again, what she puts a smile on your face, luxury changes your perspective. luxury enables you to move to more positive psychological place, i guess. because a lot of people saved quite a lot of money during the pandemic as well. we can remember that people savings when you read a lot of demand savings, that you can tap into certainly. and then making the most of that, what you think it says about europe that it's elvia and h, that is, it's most valuable company and not, you know, for example, a tech firm or, or the energy firm like, but it would be the case in other parts of the world i just cover discretionary consumer company, so it's difficult for me to comment on the take, or other verticals or other sectors. but what i would like you might as well what i mean is i want to say about how your it's managed to market itself as a sort of luxury capital of the world. yeah. well, i think, you know,

i think it goes to culture. you know, i think it goes to the comment of down on the ceo of, of image saying review to does not so handbags we so culture. and once that's the premise, then there's almost no limit to what you can. so ok. so what we've seen also is a form of di risking, i think the luxury market 25 years ago was, you know, relying on the japanese consumer, pre coping more of the chinese consumer. now it's about global wealth. and again, global culture. and so it's a much more balanced industry that it used to be, and it's partly the risk for from that point of view because you're relying on again, global wealth and not one single nationality moving, moving the needle for your, for your business. so does that mean we should expect to see the luxury market expanding even further because of the past few decades? you know it's, it's just been growing and growing. we've got a rebound now, but is that something that's going to continue?

yeah, i think there is a kind of confounding nature of growth. i think the u. s. market is broadly speaking, still in emerging market for a lottery. there's a lot of wealth, but you did not have the awareness, the culture, the appetite for those goods. and now you're aware, and you're willing, i think you have a lot of local clients, those who are ignored literally for decades. if you think about the local french, italian spanish consumers. if you think about in asia, the local tie or singapore and consumers, they were left out because you didn't really need them. you know, you needed in italy to speak, japanese, korean, mandarin, russian, and english to, to go that. and then suddenly the world shot. and you started to pay attention to the local consumers in those local markets. and so i think that's the silver lining of prove it. you know, you finally did the work, you finally understood what locals were going after. you are not just relying on the hypothetical. come back of tourists. so yeah i, i,

i am bullish for the long term in terms of the compounding nature of growth because you still have so many people you can recruit within the pyramid of luxury and rumble from a test message. thanks so much for bringing your insights on this. thanks for having me. now let's take a look at some of the other global business stories that are making the news. germany, my narrowly dodge the recession in the 1st quarter of this year. the latest official data shows that g d, p remained flat from january to march, growth figures came in short of the slight rebound that was expected. the energy crisis continues to weigh on. europe's biggest economy. a rail work is in germany could soon go on strike again with the trade union threatening to bring the country's rail service to a standstill for weeks. the union is demanding a raise of at least 12 percent for its members. real income in germany has been under pressure for 2 years with inflation high than waste growth. meanwhile,

e u member states are struggling to reach an agreement on the future of the blocks debt rules. finance ministers have been meeting in the swedish capital, stockholm some member states allowed that debt that was to surpass the permitted levels during the pandemic. now, a rift is formed over how strict rule should be in future. the i m f is among those urging e countries to tighten their belts as either we use band rigate can explain the inflation rate in the european union is way too high. one way to curb it is the lower public spending and public that. that's a recommendation by the international monetary fund and the european union is willing to hear the cause. that's why finance ministers in stock on deliberating, a reform that drew into european union. the frugal said like germany insist that dep fluids have to be tough and lead countries to lower the depth in the end.

but other countries heavily indebted like re so italy insist on lose the rules more flexibility. the fierce fight is going on behind closed doors. now, but it shouldn't take too long because markets don't appreciate fighting and instability them in this. as i aiming to come up with a solution until the end of this year bantering, it's reporting from stock home, they're staying in europe. moldova wants to win itself off. energy supplies from moscow in terms of gas consumption. this has already been largely achieved. there, however, almost 80 percent of the country's electricity is still obtained from the russian back break way region of trans nestea. and since the invasion of ukraine began, that's become an even bigger problem. it's often called the last stronghold of the soviet union. trans mystery is internationally recognized as part of moldova,

the region broke away from old open government control 3 decades ago. with the help of the russian army. now moscow backed oligarchs, roo! here twas mystery as main export is electricity going to the rest of moldova. it's produced in a gas fired power plant. russian state own gas company, gas prom supplies. trans mystery out with natural gas for free. the separatists power plant generates nearly all old overs power. and that in turn finances, the regime entrance nestea. they use this money for budget and for i'm for benches for salaries. so for reduce or other social expenditures that in yester river flows along much of the dividing line electricity from trans nestea is sold at a high price on this side. the power bill was surrogate literally, brewery is around $3000.00 euros per month. that ends up in the pockets of the

moscow back separatists with russia waging war against neighboring ukraine. he says, this can't go on basically, or because of the conflict, of course, we are in a way, worry about the situation. ah, to be honest, as a business person, for me, it's important to get a cheaper electricity. this is what is important for me because i need to get to have my business going. mold overseas ending this dependency as a high priority. it wants to stop the money transfers to trans mistrial without these guys for free their economy, their budget to their social are safe to not. nothing can actually be upkeep. upkept. sir, gay literally is happy that the electricity is flowing, even though the price has almost tripled in a year. soon, he should be able to get his power from romania. new lines are planned to connect

the 2 countries, electric grids, financed by western development banks. among others, then trans nestea will lose a key source of income and become even more isolated. and is finally here on d to we have business. if i asked you to picture a robot security guard, i god, even reckon you perhaps conjure an image, something like a terminator or, or robo cop. but the reality it turns out is rather different. this little fellow is as center and has been put to work by a swiss security company uses cloud based artificial intelligence to navigate tough to rein, including snow, a center, already protecting sites, including the company's railway depot. it's designed to patrol the area, produce daily security reports, and also supports the company's human god team. i

think he's like cute muscle for man of business. same hand berlin from all of our website data. we have. com slash help. probably wouldn't convince anyone with the sound of the bills in guitar when it comes to a v y d i to 3 from china. sure. i think civil to impress on the european mind is this on the right track with blue with would there be a 30 day?

it's 10 times more holocaust survivors in postwar, germany for them life after 1945 through today has meant writing a new and processing the past. it's been a common notion in the post more period until in part today. nancy's are always those other people under the ongoing struggle for remembrance and it gets denial in the land of the perpetrators starts may 6th on d, w ah, with full electric power, d y, d ross elected to race and with the gulf to and complete freedom flying with so the power that and more now on red. c